Mostly. I've checked a couple of websites including a forum on El Mundo and there is a pretty overwhelming response that Chávez was being a jerk and that he was appropriately dressed down by the King of Spain.
Another thing that might not be apparent by those who don't speak Spanish is that the King of Spain used the informal 'you' when talking to Chávez (informal "por qué no te callas" vs. formal "por qué Ud. no le calla"). Typically you would always use the formal 'you' when talking to talking to elders, professors, people you don't know, and statesmen. You use the informal 'you' when you talk to close friends and children. So in this case Chávez was dressed down as a child.
I think you meant “se” instead of “le.”